- Beijing’s Public Security Bureau will liquidate seized bitcoin and cryptocurrencies through the Beijing Stock Exchange and Hong Kong.
- Proceeds from sales will convert into yuan and deposit into designated state accounts, following strict Chinese legal requirements.
On June 6, Beijing’s Municipal Public Security Bureau announced plans to sell its bitcoin and other cryptocurrency holdings. This aims to standardize how the government handles seized digital assets under what authorities call the “Beijing Model.”
The bureau posted a statement on its official WeChat account explaining that legal fees are needed. Since China banned crypto transactions in 2021, selling these coins has posed a challenge. Therefore, officials signed an agreement with the Beijing Stock Exchange (CBEX) to manage the assets.
Under the deal, CBEX will appoint external firms to liquidate the cryptocurrency through regulated exchanges in Hong Kong. Subsequently, proceeds will convert to yuan and move into designated state accounts. This marks the first time a Chinese authority has detailed how to sell confiscated digital tokens.
The announcement follows a rise in criminal cases involving bitcoin across China
Investigations have left authorities holding large volumes of crypto, though the statement did not specify the total amount in BTC or other tokens. Additionally, it remains unclear if the process will include future seizures.
According to Chinese law, no agency may keep these seized assets. As a result, the bureau had to clarify which mechanisms it could use. Officials referred to legal requirements that bar government bodies from maintaining crypto on their balance sheets.
Reports since January suggest that China has been offloading about 194,000 BTC seized since 2019. CryptoQuant CEO Ki Young Ju estimates that most of that stash has already moved. In cities such as Xuzhou and Taizhou, similar practices involve private companies selling assets on international platforms.
However, Beijing’s plan offers more explicit instructions. By engaging CBEX—a local exchange that serves Chinese firms—and involving Hong Kong entities, the process aligns with national interests. Indeed, Hong Kong maintains a regulated environment for crypto trading, which China values as a global hub.
Finally, steps remain before sales begin. The statement did not set exact dates or state whether this method applies only to existing holdings. Meanwhile, CBEX and its appointed agencies must adapt their systems to work with Hong Kong exchanges, convert funds to yuan, and deposit them into state coffers.
